- Cisco, a global technology company, is reportedly set to announce another workforce reduction, marking a second round of layoffs this year as it shifts focus to areas including cybersecurity and AI.
- According to Reuters, the number of affected employees could be around or slightly exceed the 4,000 laid off in February 2024. An announcement is expected as early as August 15, alongside the company’s fourth-quarter results.
As of July 2023, the company had a workforce of about 84,900, excluding the layoffs that occurred earlier in 2024.
The company operates in over ten African countries, including Angola, South Africa, Nigeria, Kenya, Cameroon, Mauritius, Egypt, Algeria, Morocco, Senegal, Tunisia, and Libya. In May 2024, the company appointed David Meads as Vice President for Middle East and Africa operations.
Cisco, known for its routers and switches that manage Internet traffic, has faced challenges with slow demand and supply-chain issues. Thus, the company has diversified its portfolio, including a $28 billion acquisition of cybersecurity firm Splunk in March. This move aims to lessen reliance on equipment sales and boost its subscription services.
Following Cisco Systems’ acquisition of Splunk, shares rose about 4% in pre-market trading on May 16, 2024, boosted by a positive Q4 forecast and anticipated benefits from the $28 billion cybersecurity deal.
The tech giant has been actively integrating AI into its offerings, targeting $1 billion in AI product orders by 2025. In June, it launched a $1 billion fund to invest in AI startups, including Cohere, Mistral AI, and Scale AI. It has made over 20 AI-focused acquisitions and investments in recent years, advancing generative AI, machine learning, and AI integration across its portfolio.
Cisco is following the lead of other global tech giants like Meta and Google in leveraging AI by integrating it into their products, with projections suggesting AI could contribute up to $15.7 trillion to the global economy by 2030.
While AI adoption is a global trend, Africa remains behind. A 2023 Oxford Insights report shows African countries at the bottom of the global AI readiness index, with Sub-Saharan nations accounting for 21 of the 25 lowest scores.
